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Transocean Ltd. Reports Fourth Quarter and Full Year 2011 Results

February 27, 2012

ZUG, SWITZERLAND, Feb 27, 2012 (MARKETWIRE via COMTEX) --Transocean Ltd. (NYSE: RIG) (SIX: RIGN)

--  Revenues improved eight percent in the fourth quarter to $2.422    billion compared to $2.242 billion in the third quarter 2011,--  Fourth quarter 2011 net loss attributable to controlling interest was    $6.119 billion, which included $ 6.176 billion of certain net    unfavorable items including an estimated goodwill impairment of $5.2    billion and an estimated loss contingency of $1.0 billion associated    with the Macondo Well incident, compared to a net loss attributable to    controlling interest of $71 million in the third quarter 2011, which    included $81 million of certain net unfavorable items,--  Revenue efficiency(1) was 91.9 percent in the fourth quarter, up from    89.5 percent in the third quarter 2011,--  Fleet utilization(2) was 61 percent in the fourth quarter, up from 58    percent in the third quarter 2011,--  Excluding $1.0 billion for estimated loss contingencies associated    with the Macondo Well incident, fourth quarter 2011 operating and    maintenance expenses were $1.565 billion, up from $1.540 billion in    the third quarter 2011,--  Cash flows from operating activities were $563 million in the fourth    quarter, up from $492 million in the third quarter 2011,--  The Annual Effective Tax Rate(3) for 2011 increased to 41.3 percent    from 34.1 percent in the third quarter 2011, and--  New contracts totaling $1.4 billion were secured in the Fleet Status    Report period October 17, 2011 through February 14, 2012.

Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today reported a net lossattributable to controlling interest of $6.119 billion, or $18.62 perdiluted share, for the three months ended December 31, 2011. Theresults compare to a net loss attributable to controlling interest of$799 million, or $2.51 per diluted share, for the three months endedDecember 31, 2010.

Fourth quarter 2011 results included the following items, after tax,which resulted in a net adverse impact of $ 6.176 billion, or $18.80per diluted share:

--  An estimated, non-cash charge of $5.2 billion, or $15.83 per diluted    share, resulting from a goodwill impairment associated with the    contract drilling services reporting unit. The impairment was    primarily due to a decline in the market valuation of the contract    drilling services business,--  $1.0 billion, or $3.04 per diluted share, for estimated loss    contingencies associated with the Macondo Well incident that the    company believes is probable and for which a reasonable estimate can    be made at this time. This estimate will be adjusted to reflect new    information and future developments as they become known,--  $30 million, or $0.09 per diluted share, of charges associated with    the company's acquisition of Aker Drilling,--  $26 million, or $0.08 per diluted share, of income from discontinued    operations, primarily related to the gain on the sale of Challenger    Minerals (North Sea) Limited,--  $18 million, or $0.05 per diluted share, of favorable discrete tax    items, and--  $11 million, or $0.03 per diluted share, from the gain on the sale of    the GSF Adriatic XI.

Fourth quarter 2011 also included pre-tax expenses associated with theMacondo well incident of approximately $11 million, or $0.01 perdiluted share. These expenses were primarily related to legal costsand other professional fees that are not expected to be recoverablefrom insurance.

Transocean's fourth quarter Effective Tax Rate(4) was (2.2) percentcompared to 212.8 percent in the third quarter 2011. The decrease inthe Effective Tax Rate was due primarily to the impact of theestimated $5.2 billion goodwill impairment and the estimated losscontingency of $1.0 billion associated with the Macondo Wellincident. The 2011 Annual Effective Tax Rate(3) of 41.3 percentexcludes $18 million of various discrete items which reduced incometax expense in the fourth quarter. The increase to 41.3 percent inthe fourth quarter from 34.1 percent in the third quarter 2011 wasprimarily due to lower full year profitability than expected. Fourthquarter 2011 income tax expense included an adjustment of $46million, or $0.14 per diluted share, required to reflect an increasein the Annual Effective Tax Rate(3) from 34.1 percent for the firstnine months of 2011.

The relationship between our provision for income taxes and pre-taxincome can vary materially from period to period. However,significant decreases in profitability generally result in highereffective tax rates and, conversely, significant increases inprofitability generally result in lower effective tax rates. A moredetailed explanation of the factors impacting our effective tax ratecan be found in our 2011 Annual Report on form 10-K but include,among others, changes in the blend of income that is taxed based ongross revenues versus pre-tax income, rig movements between taxingjurisdictions, and our rig operating structures.

Please see the accompanying schedule entitled \"Supplemental EffectiveTax Rate Analysis.\"

Revenues for the three months ended December 31, 2011 were $2.422billion, an eight percent improvement compared to revenues of $2.242billion during the three months ended September 30, 2011. The $180million increase in revenues was primarily due to the two HarshEnvironment semi-submersible rigs added through the acquisition ofAker Drilling and higher utilization, primarily on DeepwaterFloaters, several of which were in the shipyard during the thirdquarter 2011. Fourth quarter revenue efficiency also improved to 91.9percent, up from 89.5 percent in the third quarter 2011.

Operating and maintenance expenses totaled $2.565 billion for thefourth quarter 2011, up from $1.540 billion for the prior quarter.The increase of $1.025 billion was due primarily to $1.0 billion ofestimated loss contingencies associated with the Macondo Wellincident. Additionally, approximately $25 million in costs wasrelated to the addition of the two Aker semi-submersible rigs andunplanned charges associated with the contract termination of theDeepwater Expedition. These costs were partially offset primarily bylower operating and maintenance expenses associated with rigsundergoing shipyard, maintenance, repair and equipment certificationprojects during the period, and other favorable items.

General and administrative expenses were $88 million for the fourthquarter 2011 compared to $67 million in the previous quarter. The $21million increase was primarily due to Aker acquisition costs.

For the fourth quarter, Interest expense, net of amounts capitalized,was $178 million, compared to $151 million in the third quarter 2011,reflecting the acquisition of Aker Drilling and the issuance of the$2.5 billion new senior notes during the period. Capitalized interestfor the fourth quarter 2011 was $10 million compared to $5 million inthe prior quarter. Interest income increased to $17 million in thefourth quarter 2011, compared to $7 million in the third quarter,primarily associated with cash investments restricted for payment ofcertain debt instruments assumed in the Aker acquisition.

Cash flows from operating activities increased $71 million to $563million for the fourth quarter 2011 compared to $492 million for thethird quarter 2011 due to improved operating results.

Full Year 2011

For the year ended December 31, 2011, net loss attributable tocontrolling interest totaled $5.725 billion, or $17.79 per dilutedshare, resulting primarily from the estimated goodwill impairment of$5.2 billion, or $16.15 per diluted share, associated with thecontract drilling services reporting unit and the estimated losscontingencies of $1.0 billion, or $3.11 per diluted share, associatedwith the Macondo Well incident. Additionally, approximately $71million, or $0.13 per diluted share, of expense was incurredprimarily related to legal costs and other professional fees that arenot expected to be recoverable from insurance. Partially offsettingthese charges were net favorable items for the full year totaling $46million, or $0.15 per diluted share, and included the following:

--  $197 million, or $0.62 per diluted share, from the gain on the sale of    discontinued operations of the Trident 20 and Challenger Minerals    (North Sea) Limited,--  $113 million, or $0.36 per diluted share, of charges associated with    the acquisition of Aker Drilling, including $78 million resulting from    a forward foreign exchange contract executed to address potential    exchange rate variability, $22 million for acquisition costs, and $13    million related to losses on a marketable security,--  $42 million or $0.12 per diluted share, of charges primarily related    to discrete tax and other items,--  $33 million, or $0.10 per diluted share, from the gain on the sale of    the Transocean Mercury and the GSF Adriatic XI, and including the sale    of the equity interest in Overseas Drilling Limited, which owns the    research vessel Joides Resolution, and--  $29 million or $0.09 per diluted share, loss on impairment primarily    relating to the sale of the George H. Galloway, GSF Labrador, GSF    Britannia, and the Searex IV.

Interest expense, net of amounts capitalized, was $621 million,compared to $567 million for the full year 2010. Capitalized interestfor the full year 2011 was $39 million compared to $89 million in2010. Interest income was $44 million for the full year 2011 comparedto $23 million in 2010.

For the full year 2011, cash flow from operating activities totaled$1.785 billion compared to $3.946 billion for 2010 with the decreaseprimarily due to lower operating results.

For the year ended December 31, 2010, net income attributable tocontrolling interest totaled $961 million, or $2.99 per dilutedshare. Net income for the year ended December 31, 2010, includedafter-tax net charges of $819 million, or $2.54 per diluted share,resulting primarily from the $1 billion impairment of the StandardJackups. After-tax net charges for the full year 2010 also includedamounts associated with litigation matters, discontinued operations,an impairment of oil and gas properties, a loss on the sale of tworigs and losses on the early retirement of debt, and other matterstotaling $76 million, partially offset by a $267 million after-taxgain resulting from insurance recoveries associated with the loss ofthe Deepwater Horizon.

Full year 2010 results also included expenses associated with theMacondo well incident of $137 million, or $116 million after tax, or$0.36 per diluted share. These expenses included legal costs,internal investigation costs, professional fees that are not expectedto be recovered by insurance, and increased insurance premiums.

Full Year 2012 Guidance Summary

The following table is a summary of the company's full year 2012guidance for key income statement and balance sheet items. Thisinformation is based on current expectations and certain managementassumptions, and is subject to change.

                  Item                               Range----------------------------------------------------------------------Other Revenues *                          $625 million - $650 million----------------------------------------------------------------------Operating and Maintenance Expenses       $6.15 billion - $6.35 billion----------------------------------------------------------------------Depreciation and Amortization             $1.4 billion - $1.5 billion----------------------------------------------------------------------General and Administrative Expenses       $270 million - $300 million----------------------------------------------------------------------Net Interest Expense **                   $610 million - $630 million----------------------------------------------------------------------Capital Expenditures                      $1.2 billion - $1.3 billion---------------------------------------------------------------------- *  Other Revenues includes Drilling Management Services, recharge revenues,    and other miscellaneous revenues ** Net Interest Expense is net of capitalized interest of approximately $40    million and Interest Income of approximately $50 million

Forward-Looking Statements

Statements included in this news release regarding Transocean's fullyear 2012 guidance, the estimate of Transocean's goodwill impairmentfor the fiscal year ended December 31, 2011, and the estimated losscontingencies associated with the Macondo Well incident areforward-looking statements that involve certain assumptions. Thesestatements are based on currently available competitive, financial,and economic data along with our current operating plans and involverisks and uncertainties including, but not limited to, marketconditions, Transocean's results of operations and other factorsdetailed in \"Risk Factors\" and elsewhere in Transocean's filings withthe Securities and Exchange Commission. Should one or more of theserisks or uncertainties materialize (or the other consequences of sucha development worsen), or should underlying assumptions proveincorrect, actual outcomes may vary materially from those forecastedor expected. Transocean disclaims any intention or obligation toupdate publicly or revise such statements, whether as a result of newinformation, future events or otherwise.

Conference Call Information

Transocean will conduct a teleconference call at 10:00 a.m. ET, 4:00p.m. CET, on February 27, 2012. To participate, dial +1 719-325-4781and refer to confirmation code 6384703 approximately 10 minutes priorto the scheduled start time of the call.

In addition, the conference call will be simultaneously broadcastover the Internet in a listen-only mode and can be accessed bylogging onto Transocean's website at www.deepwater.com and selecting\"Investor Relations.\" A file containing three charts that may bediscussed during the conference call, titled \"4Q11 Charts,\" has beenposted to Transocean's website and can also be found by selecting\"Investor Relations/Quarterly Toolkit.\" The conference call may alsobe accessed via the Internet at www.CompanyBoardroom.com by typing inTransocean's New York Stock Exchange trading symbol, \"RIG.\"

A telephonic replay of the conference call should be available after1:00 p.m. ET, 7:00 p.m. CET, on February 27, 2012, and can beaccessed by dialing +1 719-457-0820 or +1 888-203-1112 and referringto the confirmation code 6384703. Also, a replay will be availablethrough the Internet and can be accessed by visiting either of theabove-referenced internet addresses. Both replay options will beavailable for approximately 30 days.

About Transocean

Transocean is a leading international provider of offshore contractdrilling services for oil and gas wells. Transocean owns or haspartial ownership interests in and operates a fleet of 132 mobileoffshore drilling units consisting of 50 High-Specification Floaters(Ultra-Deepwater, Deepwater and Harsh-Environment semisubmersiblesand drillships), 25 Midwater Floaters, nine High-SpecificationJackups, 47 Standard Jackups and one swamp barge. In addition, wehave two Ultra-Deepwater Drillships and four High-SpecificationJackups under construction. Transocean specializes in technicallydemanding sectors of the global offshore drilling business with aparticular focus on deepwater and harsh environment drillingservices. We believe we operate one of the most versatile offshoredrilling fleets in the world.

(1) Revenue efficiency is defined as actual revenue divided by thehighest amount of total revenue which could have been earned duringthe relevant period(s). See the accompanying schedule entitled\"Revenue Efficiency.\"

(2) Utilization is defined as the total actual number of revenueearning days in the period as a percentage of the total number ofcalendar days in the period for all drilling rigs in the company'sfleet. See the accompanying schedule entitled \"Utilization.\"

(3) Annual Effective Tax Rate is defined as income tax expense fromcontinuing operations excluding various discrete items (such aschanges in estimates and tax on items excluded from income beforeincome tax expense) divided by income from continuing operationsbefore income tax expense excluding gains on sales and similar itemspursuant to the accounting standards for income taxes. See theaccompanying schedule entitled \"Supplemental Effective Tax RateAnalysis.\"

(4) Effective Tax Rate is defined as income tax expense fromcontinuing operations divided by income from continuing operationsbefore income taxes. See the accompanying schedule entitled\"Supplemental Effective Tax Rate Analysis.\"

For more information about Transocean, please visit the website atwww.deepwater.com.

                      TRANSOCEAN LTD. AND SUBSIDIARIES                    CONSOLIDATED STATEMENTS OF OPERATIONS                    (In millions, except per share data)                                 (Unaudited)                                       Three months ended     Year ended                                          December 31,       December 31,                                       ------------------  ----------------                                         2011      2010      2011     2010                                       -------  ---------  -------  -------Operating revenues  Contract drilling revenues           $ 2,238  $   2,008  $ 8,335  $ 8,888  Contract drilling intangible   revenues                                 13         13       45       98  Other revenues                           171        106      762      480                                       -------  ---------  -------  -------                                         2,422      2,127    9,142    9,466                                       -------  ---------  -------  -------Costs and expenses  Operating and maintenance              2,565      1,339    6,956    5,074  Depreciation and amortization            374        381    1,449    1,536  General and administrative                88         66      288      246                                       -------  ---------  -------  -------                                         3,027      1,786    8,693    6,856                                       -------  ---------  -------  -------Loss on impairment                      (5,201)    (1,010)  (5,229)  (1,010)Gain (loss) on disposal of assets, net      (1)         1        4      257                                       -------  ---------  -------  -------Operating income (loss)                 (5,807)      (668)  (4,776)   1,857                                       -------  ---------  -------  -------Other income (expense), net  Interest income                           17          6       44       23  Interest expense, net of amounts   capitalized                            (178)      (152)    (621)    (567)  Loss on retirement of debt                --        (13)      --      (33)  Other, net                                (2)        (9)     (81)      10                                       -------  ---------  -------  -------                                          (163)      (168)    (658)    (567)                                       -------  ---------  -------  -------Income (loss) from continuing operations before income tax expense   (5,970)      (836)  (5,434)   1,290Income tax expense (benefit)               132        (32)     395      336                                       -------  ---------  -------  -------Income (loss) from continuing operations                             (6,102)      (804)  (5,829)     954Income from discontinued operations, net of tax                                 26          9      197       34                                       -------  ---------  -------  -------Net income (loss)                       (6,076)      (795)  (5,632)     988Net income attributable to noncontrolling interest                    43          4       93       27                                       -------  ---------  -------  -------Net income (loss) attributable to controlling interest                  $(6,119) $    (799) $(5,725) $   961                                       -------  ---------  -------  -------Earnings (loss) per share-basic  Earnings (loss) from continuing   operations                          $(18.70) $   (2.53) $(18.40) $  2.88  Earnings (loss) from discontinued   operations                             0.08       0.02     0.61     0.11                                       -------  ---------  -------  -------  Earnings (loss) per share            $(18.62) $   (2.51) $(17.79) $  2.99                                       -------  ---------  -------  -------Earnings (loss) per share-diluted  Earnings (loss) from continuing   operations                          $(18.70) $   (2.53) $(18.40) $  2.88  Earnings (loss) from discontinued   operations                             0.08       0.02     0.61     0.11                                       -------  ---------  -------  -------  Earnings (loss) per share            $(18.62) $   (2.51) $(17.79) $  2.99                                       -------  ---------  -------  -------Weighted-average shares outstanding  Basic                                    329        319      322      320  Diluted                                  329        319      322      320
                      TRANSOCEAN LTD. AND SUBSIDIARIES                         CONSOLIDATED BALANCE SHEETS                      (In millions, except share data)                                 (Unaudited)                                                             December 31,                                                         -------------------                                                            2011      2010                                                         --------- ---------AssetsCash and cash equivalents                                $  4,017  $  3,394Accounts receivable, net  Trade                                                     2,049     1,653  Other                                                       127       190Materials and supplies, net                                   627       514Deferred income taxes, net                                    142       115Assets held for sale                                           26        --Other current assets                                          621       329                                                         --------  --------      Total current assets                                  7,609     6,195                                                         --------  --------Property and equipment                                     29,037    26,721Property and equipment of consolidated variable interest entities                                                   2,252     2,214Less accumulated depreciation                               8,760     7,616                                                         --------  --------    Property and equipment, net                            22,529    21,319                                                         --------  --------Goodwill                                                    3,205     8,132Other assets                                                1,745     1,165                                                         --------  --------      Total assets                                       $ 35,088  $ 36,811                                                         --------  --------Liabilities and equityAccounts payable                                         $    880  $    832Accrued income taxes                                           89       109Debt due within one year                                    1,942     1,917Debt of consolidated variable interest entities due within one year                                               97        95Other current liabilities                                   2,350       883                                                         --------  --------      Total current liabilities                             5,358     3,836                                                         --------  --------Long-term debt                                             10,756     8,354Long-term debt of consolidated variable interest entities                                                     741       855Deferred income taxes, net                                    523       575Other long-term liabilities                                 1,903     1,791                                                         --------  --------      Total long-term liabilities                          13,923    11,575                                                         --------  --------Commitments and contingenciesRedeemable noncontrolling interest                            116        25Shares, CHF 15.00 par value, 365,135,298 authorized, 167,617,649 conditionally authorized, 365,135,298 issued and 349,805,793 outstanding at December 31, 2011; and 335,235,298 authorized, 167,617,649 conditionally authorized, 335,235,298 issued and 319,080,678 outstanding at December 31, 2010               4,982     4,482Additional paid-in capital                                  7,211     7,504Treasury shares, at cost, 2,863,267 held at December 31, 2011 and 2010                                               (240)     (240)Retained earnings                                           4,244     9,969Accumulated other comprehensive loss                         (496)     (332)                                                         --------  --------    Total controlling interest shareholders' equity        15,701    21,383                                                         --------  --------    Noncontrolling interest                                   (10)       (8)                                                         --------  --------      Total equity                                         15,691    21,375                                                         --------  --------      Total liabilities and equity                       $ 35,088  $ 36,811                                                         --------  --------                      TRANSOCEAN LTD. AND SUBSIDIARIES                    CONSOLIDATED STATEMENTS OF CASH FLOWS                                (In millions)                                 (Unaudited)                                    Three months ended  Twelve months ended                                       December 31,         December 31,                                    ------------------  -------------------                                      2011      2010      2011      2010                                    -------  ---------  -------  ----------Cash flows from operating activities Net income (loss)                  $(6,076) $    (795) $(5,632) $      988 Adjustments to reconcile to net cash provided by operating activities   Amortization of drilling   contract intangibles                 (13)       (13)     (45)        (98)   Depreciation and amortization        374        381    1,449       1,536   Share-based compensation expense      21         23       95         102   Loss on impairment                 5,201      1,010    5,229       1,010   (Gain) loss on disposal of   assets, net                            1         (1)      (4)       (257)   Gain on disposal of discontinued   operations, net                      (12)        --     (181)         --   Amortization of debt issue   costs, discounts and premiums,   net                                   30         41      125         189   Deferred income taxes                (33)       (40)     (31)       (114)   Other, net                            19         (7)     112          55   Changes in deferred revenue, net     (23)        --      (16)        205   Changes in deferred expenses,   net                                    5        (24)     (61)        (79)   Changes in operating assets and   liabilities                        1,069        221      745         409                                    -------  ---------  -------  ----------Net cash provided by operating activities                             563        796    1,785       3,946                                    -------  ---------  -------  ----------Cash flows from investing activities  Capital expenditures                 (350)      (422)  (1,020)     (1,391)  Investment in business   combination, net of cash   acquired                          (1,047)        --   (1,246)         --  Payment for settlement of forward   exchange contract, net                --         --      (78)         --  Proceeds from disposal of assets,   net                                   71          9      177          60  Proceeds from disposal of   discontinued operations, net          25         --      284          --  Proceeds from insurance   recoveries for loss of drilling   unit                                  --         --       --         560  Proceeds from sale of marketable   securities                            --         32       --          37  Other, net                             14          1      (13)         13                                    -------  ---------  -------  ----------Net cash used in investing activities                          (1,287)      (380)  (1,896)       (721)                                    -------  ---------  -------  ----------Cash flows from financing activities  Change in short-term borrowings,   net                                 (146)       (62)     (88)       (193)  Proceeds from debt                  2,934         --    2,939       2,054  Repayments of debt                 (2,137)    (1,599)  (2,409)     (2,565)  Proceeds from restricted cash   investments                          479         --      479          --  Deposits to restricted cash   investments                         (523)        --     (523)         --  Proceeds from share issuance        1,211         --    1,211          --  Distribution of qualifying   additional paid-in capital          (255)        --     (763)         --  Purchases of shares held in   treasury                              --         --       --        (240)  Financing costs                       (83)        --      (83)        (15)  Other, net                            (25)         3      (29)         (2)                                    -------  ---------  -------  ----------Net cash provided by (used in) financing activities                 1,455     (1,658)     734        (961)                                    -------  ---------  -------  ----------Net increase (decrease) in cash and cash equivalents                       731     (1,242)     623       2,264Cash and cash equivalents at beginning of period                  3,286      4,636    3,394       1,130                                    -------  ---------  -------  ----------Cash and cash equivalents at end of period                             $ 4,017  $   3,394  $ 4,017  $    3,394                                    -------  ---------  -------  ----------                      TRANSOCEAN LTD. AND SUBSIDIARIES                         FLEET OPERATING STATISTICS                                  Operating Revenues (in millions) (1)                           -------------------------------------------------                                                         Twelve months ended                                 Three months ended          December 31,                           ----------------------------- -------------------                            December September  December                              31,       30,       31,                              2011      2011      2010      2011      2010                           --------- --------- --------- --------- ---------Contract Drilling Revenues  High-Specification   Floaters:    Ultra Deepwater     Floaters              $   1,066 $   1,030 $     740 $   3,945 $   3,171    Deepwater Floaters           259       187       339       975     1,461    Harsh Environment     Floaters                    285       190       155       806       674                           --------- --------- --------- --------- ---------  Total High-Specification   Floaters                    1,610     1,407     1,234     5,726     5,306  Midwater Floaters              333       352       477     1,461     2,093  Jackups:    High-Specification     Jackups                      68        69        32       216       241    Standard Jackups             220       226       259       905     1,222                           --------- --------- --------- --------- ---------  Total Jackups                  288       295       291     1,121     1,463  Other Rigs                       7         7         6        27        26                           --------- --------- --------- --------- ---------Total Contract Drilling Revenues                      2,238     2,061     2,008     8,335     8,888                           --------- --------- --------- --------- ---------Contract Intangible Revenue                          13        12        13        45        98Other Revenues  Client Reimbursable   Revenues                       41        43        34       162       151  Integrated Services and   Other                          13        14        15        56        68  Drilling Management   Services                      117       112        57       544       261                           --------- --------- --------- --------- ---------Total Other Revenues             171       169       106       762       480                           --------- --------- --------- --------- ---------Total Company              $   2,422 $   2,242 $   2,127 $   9,142 $   9,466                           --------- --------- --------- --------- ---------                                       Average Daily Revenue (1)                           -------------------------------------------------                                                         Twelve months ended                                 Three months ended          December 31,                           ----------------------------- -------------------                            December September  December                              31,       30,       31,                              2011      2011      2010      2011      2010                           --------- --------- --------- --------- ---------  High-Specification   Floaters:    Ultra Deepwater     Floaters              $ 542,900 $ 524,800 $ 435,900 $ 513,900 $ 457,300    Deepwater Floaters       351,600   348,400   395,600   373,700   384,900    Harsh Environment     Floaters                468,300   433,800   366,800   438,000   401,900  Total High-Specification   Floaters                  486,600   478,900   414,500   472,200   427,600  Midwater Floaters          274,300   287,400   298,500   301,500   319,600  High-Specification   Jackups                   111,900   115,600   129,400   111,800   138,900  Standard Jackups            93,400   100,400   110,600   103,300   118,700  Other Rigs                  73,800    73,800    73,000    74,300    72,700                           --------- --------- --------- --------- ---------Total Drilling Fleet       $ 295,400 $ 290,200 $ 276,900 $ 297,400 $ 283,500                           --------- --------- --------- --------- --------- (1) Average daily revenue is defined as contract drilling revenue earned     per revenue earning day in the period. A revenue earning day is defined     as a day for which a rig earns dayrate after commencement of     operations.                      TRANSOCEAN LTD. AND SUBSIDIARIES                   FLEET OPERATING STATISTICS (continued)                                              Utilization (2)                               ---------------------------------------------                                                             Twelve months                                                                 ended                                    Three months ended        December 31,                               --------------------------- -----------------                               December September December                                  31,      30,       31,                                 2011      2011     2010     2011     2010                               -------- --------- -------- -------- --------  High-Specification Floaters:    Ultra Deepwater Floaters      79%      79%       76%      79%      79%    Deepwater Floaters            50%      37%       58%      45%      65%    Harsh Environment Floaters    95%      95%       92%      92%      92%  Total High-Specification   Floaters                       72%      67%       71%      69%      76%  Midwater Floaters               55%      55%       68%      56%      69%  High-Specification Jackups      74%      69%       31%      61%      53%  Standard Jackups                51%      48%       46%      46%      51%  Other Rigs                      99%      100%      48%      66%      49%                               -------- --------- -------- -------- --------Total Drilling Fleet              61%      58%       58%      57%      63% (2) Utilization is defined as the total actual number of revenue earning     days in the period as a percentage of the total number of calendar days     in the period for all drilling rigs in our fleet.                                          Revenue Efficiency(3)                                Trailing Five Quarters and Historical Data                             -----------------------------------------------                               4Q    3Q    2Q    1Q    4Q    FY    FY    FY                              2011  2011  2011  2011  2010  2011  2010  2009                             ----- ----- ----- ----- ----- ----- ----- -----Ultra Deepwater              89.5% 86.4% 89.3% 85.3% 86.1% 87.7% 88.6% 94.3%Deepwater                    88.1% 87.7% 93.9% 88.2% 88.6% 89.4% 90.3% 89.6%Harsh Environment Floaters   98.0% 94.4% 98.4% 99.2% 96.1% 97.4% 96.0% 97.7%Midwater Floaters            94.2% 90.8% 91.9% 93.6% 85.0% 92.6% 92.5% 93.7%High Specification Jackups   94.3% 97.3% 95.6% 95.1% 97.7% 95.6% 95.3% 96.2%Standard Jackups             96.4% 98.2% 98.4% 97.7% 98.9% 97.7% 97.3% 96.2%Others                       98.6% 99.5% 97.6% 99.0% 96.1% 98.7% 98.4% 93.9%                             ----- ----- ----- ----- ----- ----- ----- -----Total Fleet                  91.9% 89.5% 92.1% 90.0% 88.7% 90.9% 91.7% 94.0%                             ----- ----- ----- ----- ----- ----- ----- ----- (3) Revenue efficiency is defined as actual revenue divided by the highest     amount of total revenue which could have been earned during the     relevant period(s).                      TRANSOCEAN LTD. AND SUBSIDIARIES                  SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS                    (In US$ millions, except percentages)                                Three months ended           Year ended                          -----------------------------  ------------------                          December  September  December  December  December                             31,       30,        31,       31,       31,                            2011       2011      2010      2011      2010                          --------  ---------  --------  --------  --------Income from continuing operations before income taxes                    $ (5,970) $      47  $   (836) $ (5,434) $  1,290  Add back (subtract):  Litigation matters         1,000         --         1     1,008        27  Acquisition costs             17          5        --        22        --  Gain on loss of   drilling unit                --         --        --        --      (267)  (Gain) loss on disposal   of other assets, net        (11)        --        --       (19)       14  Loss on impairment of   goodwill and other   assets                    5,201          3     1,010     5,229     1,010  Gain on sale of equity   method investment            --        (13)       --       (13)       --  Loss on exchange rates   for forward contract         --         78        --        78        --  Loss on marketable   security                     13         --        --        13        --  Loss on retirement of   debt                         --         --        13        --        33  Other, net                    --          1        (8)        6        (3)                          --------  ---------  --------  --------  --------Adjusted income from continuing operations before income taxes           250        121       180       890     2,104                          --------  ---------  --------  --------  --------Income tax expense from continuing operations         132        100       (32)      395       336  Add back (subtract):  Changes in estimates   (1)                          18         --        (8)      (30)      (37)  Other, net                    --         --        --         2        (1)                          --------  ---------  --------  --------  --------Adjusted income tax expense from continuing operations (2)           $    150  $     100  $    (40) $    367  $    298                          --------  ---------  --------  --------  --------Effective Tax Rate (3)        -2.2%     212.8%      3.8%     -7.3%     26.1%Annual Effective Tax Rate (4)                          59.6%      82.6%    -22.1%     41.3%     14.2%(1)  Our estimates change as we file tax returns, settle disputes with tax     authorities or become aware of other events and include changes in (a)     deferred taxes, (b) valuation allowances on deferred taxes and (c)     other tax liabilities.(2)  The three months and year ended December 31, 2011 include $46 million     of additional tax expense (benefit) reflecting the catch-up effect of     an increase (decrease) in the annual effective tax rate from the     previous quarter estimate.(3)  Effective Tax Rate is income tax expense divided by income before     income taxes.(4)  Annual Effective Tax Rate is income tax expense excluding various     discrete items (such as changes in estimates and tax on items excluded     from income before income taxes) divided by income before income taxes     excluding gains and losses on sales and similar items pursuant to the     accounting standards for income taxes and estimating the annual     effective tax rate.

SOURCE: Transocean Ltd.